Digital Transformation is Culture Transformation
Like many, I’m beginning to worry that the phrase “digital transformation” is becoming mere jargon. The term is too broadly used. For some, it describes a radical revamp of a business model, while others use the term when they purchase new technology or make a modest update to a particular process. However, the business needs behind the term — to be fast, nimble, and bold, to rethink operating models, to use data streams in new ways — are real, challenging, and going nowhere soon. It’s demanding work on the levels of both technology and culture. No wonder we groan when someone uses the term in a shallow way.
Despite being a hot term, digital transformation is ultimately just business transformation. Modern business transformation means taking advantage of today’s unfair technology advances. And as always, great business transformation requires not only the leverage of new technologies, but true cultural transformation.
Many transformations have failed because although the right technology was put in place to allow for transformative effects, occasionally senior business leaders forget to account for the culture transformation that’s required.
Digital transformation is culture-driven, not technology-driven. The problem can often be traced to an internal conflict amongst, a) the people setting digital transformation strategy, b) those charged with executing it, and c) those charged with measuring the success and living with the results.
Not only must every transformation take into account the 4Ps of an organization (policy, process, people and platforms), it is important to recognize that achieving transformation requires buy-in from the entire organization. If you have trouble getting that buy-in, I suggest you review the 5 trends in digital transformation, which can be leveraged to help show value and gain buy-in.
Fiefdoms, kingdoms, and empires must die. At least they must, if your organization wants to be fast, bold, and smart enough to survive the future. In their place, K2 Digital emphasizes the 3Cs — Cross Company Collaboration. Divisions within organizations need to understand their unique strengths, focusing on how to work with other divisions, business groups, and third parties on the areas that aren’t their strengths.
Leaders often want to build their teams up to a full set of capabilities in order to avoid relying on other business units or firms, but this tactic leads to organizational bloat, inefficiencies, and mediocre results. Moreover, these old-style leaders are still focused on the quantity of people who report into them. Today, we know that headcount is a vanity metric.
Organizations that survive and thrive have culturally transformed to eliminate the desire for fiefdoms, and moved toward organizational and departmental specialization. You know what your company and team are best at, and each department knows what innovation it has to bring, and how it can contribute to making transformation happen. The result is a nimbler, faster, bolder, and smarter organization — one ready to win, not just compete.
So when the time comes to think about your next business initiative, think about the 4Ps, think about the 3Cs, and ask for help where you need it.
About the Author:
Please do not hesitate to contact me at Lawrence.Tepperman@gmail.com or on LinkedIn
Lawrence Tepperman is a serial entrepreneur, having successfully grew and exited two startups, 80/20 Solutions and K2 Digital, and is now Proprietor & President of Berkeley Payment Solutions Inc.
